Which of the following phenomena add a second channel to the monetary transmission mechanism?

Question

Quizplus · Accepted Answer

International capital mobility adds a second channel to the monetary transmission mechanism by affecting the exchange rate. When there is capital mobility, changes in interest rates can attract or repel capital flows, leading to changes in the exchange rate that can affect output and inflation. The other options listed do not add a second channel to the monetary transmission mechanism.

Which of the Following Phenomena Add a Second Channel to the Monetary